Looks like your wallet may be getting a bit lighter very soon. In news that will upset many Amazon Prime subscribers (this writer included), it turns out that the online retailer will be raising its prices on Amazon Prime membership substantially, Variety reports.
In fact, they will be raising it from $99 a year to $119 a year, which is a whopping 20 percent increase. New subscribers will see this price take effect on May 11 and existing subscribers will be affected starting on June 16 of this year.
So what’s the reason behind this price spike? Apparently, Amazon Prime members are buying a LOT of things online, and as a result, the shipping costs are pretty high — even for Amazon. That price increase is likely to offset the cut into their profit margins. I guess shipping never really was free, after all, huh?
“It makes sense that Amazon would increase the price of Amazon Prime now,” said Mike Levin, partner and co-founder of Consumer Intelligence Research Partners. “Amazon likely thinks most members will accept the price increase, and perhaps shop at Amazon even more to justify the investment in free shipping.”
But, of course, where this affects us most is in Prime’s digital streaming content. Amazon is spending more and more money on their content, and with costs set to increase in the second quarter of 2018 — and let’s not forget the mad coin they’re dropping on Lord of the Rings — it makes sense they’d be looking to pass those costs onto subscribers.
As much as I hate it, I think Levin is right. I use Amazon so much that I don’t think I’ll be seeing myself ditching Prime any time soon, even if it is costing a bit more every year. Yeah, I know. I’m part of the problem.
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